How does one swap some or all of NXM back to ETH if the Capital Pool is rarely over 100% ?
When the MCR% <=100%, NXM to ETH redemptions are prohibited to ensure the mutual can meet the minimum capital requirement and be very confident claims can be paid in the event of a material loss event.
Every member who holds NXM owns a share of the mutual proportionate to the amount of NXM they own. When the mutual is in profit (MCR% > 100%), members are able to sell NXM for ETH and take profit.
When the MCR <=100%, members are not allowed to take profit.
The MCR% has risen over 100% over the past few months, but whenever it does, it is sold into by bots who redeem NXM for ETH. Members are working to increase the amount of capital in the pool through various methods. The mutual just staked 15,000 ETH with Lido for stETH, so we are beginning to invest some of the assets from the capital pool to earn yield.
If you want to sell your NXM, you can wrap NXM → wNXM and sell through a DEX on the open market.